Agriculture trading is an age-old concept and goes back to the time when Romans grew crops for trading. Since ancient times, agriculture trading has expanded its wing globally. Undoubtedly, modern agri-trading not only includes the import and export of food products but also includes fibers, livestock, and raw materials. Modern Agri-trading is vast and global due to the advancement of technology. Moreover, the ever-changing trade agreements play a vital role in the growth of agri-trading.
Modern Agri-trading is a complex web of import and export of various food products across the globe and is becoming popular due to high profit. Higher profits in the Agri- trade sector attracts new businessmen. Along with higher profits, there come ongoing challenges, numerous myths and misconceptions too, which still exist in the Agri-trading sector. These myths impact the trade business. Here, in this blog, we try to bring forth the actual FACTS and remove the prevailing Myths in agriculture trading in 2021. Let’s find out the truth…
Common Myths in Agriculture Trading:
Following are the Common Myths running around the agriculture trading:
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MYTH – Agriculture Trading is difficult to understand
Fact – It is believed that agriculture trading is hard to understand as compared to other commodities trading. However, the fact is in contradiction to the myth. One can easily understand the prices and flow of agriculture trade by understanding the harvesting season and ongoing trends of the Agri industry. This is quite easy as compared to other commodities trading like gold, silver, or raw materials.
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MYTH – Agriculture trade prices can be easily manipulated
Fact – It is commonly believed that the prices of Agri-commodities like wheat, pulses, rice can be easily manipulated by the traders. However, the fact says that it is not possible to manipulate the prices of commodities. All the trading is done through future contracts.
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MYTH – Agri- Trade market is highly volatile
Fact – Many traders believe that agri-trading is highly volatile; hence, they overtrade. Reverse to the myth, the agri-trade market is not as volatile as compared to another commodity trading for the information asymmetry is much less in the agriculture trade market compare to the other trade market. The season and the public demand-supply are known to every stakeholder to some extent.
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MYTH – Agriculture Trading needs huge investment
Fact – It is commonly believed that trading in agricultural products needs more investment and it cannot be started with a small investment. Only the big players can invest such a huge amount. The fact is that Agri- trading needs less investment as compared to another commodity trading. Anyone can invest and trade in Agri-trading business through the national trading exchanges. In India, there are 6 National Trading Exchanges. Out of them, only 2 Exchanges deal in agri-trading.
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MYTH – Agriculture Trading Is For Middlemen
Fact – As per the research, modern trading in agriculture reduces the middlemen’s involvement in commodity trading. Many new startups completely eradicate the involvement of middlemen. This removal results in less cost for the buyers and high profits for the sellers.
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MYTH – Profits In Agriculture Trading Is Impossible
Fact – With the proper understanding of the market, trading discipline, demand-supply fundamentals, seasonal price patterns, and risk management, traders can easily make profits in this sector.
Investment in Agriculture Trading:
After the removal of the myths in agriculture trading, one must concentrate on investing in the Agri-trade sector. One must start trading in agricultural commodities for investment purposes. The traditional method is outdated and will not be suitable in this digital world. The B2B platforms are the modern way for trading Agri commodities globally. Numerous B2B platforms deal in Agri-trading. However, most of the B2B platforms are similar, offering the same thing on a different platter.
Tradologie.com – Removing All Myths of Agri- Trading:
Tradologie.com brings you the most convenient way to trade globally. The world’s 1st Next-Generation B2B Enquiry to Delivery the trade-enabling platform facilitates Agri-trading between the verified global sellers and genuine global buyers by connecting them. Some of the unique features of the platform are:
- Access to Ready to buy global buyers
- Access to Ready to sell global Sellers
- 24/7 global exhibition
- Connect global buyers to global sellers
- Real-time live negotiation
- Eradication of Middlemen
- Completely transparent
- Totally Secure
Conclusion:
Investment in agriculture trading increases globally. So, don’t let the myths ruin your chances of reaping the profit in agriculture trading. Talk to the experts of Tradologie.com – the world’s 1st next-generation B2B platform, bust the myths and earn a good profit in Agri commodity trading.
